EURUSD is preparing to rally through 1.1900-1.2000

Technical Analysis:

EURUSD is preparing to resume its rally towards 1.1900-1.2000 zone going forward. The single currency pair needs to stay above 1.1524 to keep the bullish structure intact. It could be carving a lower degree wave ii towards 1.1550 mark, before turning bullish again.

EURUSD has found support from 1.1520-30 lows, which is also the Elliott Channel support as seen on the daily chart here. If the corrective wave is complete, potential remains for a new high above 1.2350 mark in the next several weeks.

Alternatively, if the last leg of corrective drop is still unfolding, EURUSD could retrace towards 1.1900-1.2000 handle before it finds resistance again. Also note that 1.2000 zone is the fibonacci 0.618 retracement of the drop between 1.2266 and 1.1524 levels respectively.

High probability remains for a bearish bounce if prices manage to reach 1.2000 level, potential Wave 2 of (C). The currency might be preparing to rally and a push above 1.1620 levels would accelerate further.

Traders might be willing to initiate fresh long positions around 1.1550-70 zone, with protective stop just below 1.1524 levels. The upside target in the next few weeks remains 1.1900-1.2000 zone. We shall review again when prices reach there.

Prepared by

Finacademy Technical Team